Eternity Law International News Obtaining a crypto license in DMCC (UAE)

Obtaining a crypto license in DMCC (UAE)

Published:
February 3, 2022

The procedure of acquiring a crypto license can be quite daunting, especially in a complex and ever-changing regulatory framework. However, DMCC has made it easier than ever to get crypto authorization. Read on to find out how to obtain a Dubai cryptocurrency license, including the documents you should provide, the fees you should pay, and the timeline you can expect.

Why obtain a cryptocurrency Dubai License?

The United Arab Emirates, particularly Dubai, has become a hub for virtual currencies and blockchain technologies. This is due to the fact that Dubai crypto regulations are attractive regarding crypto-operators and exchange firms. This can be beneficial for anyone looking to set up their own virtual currency exchange or business, as authorization from the Dubai Multi Commodities Center (DMCC) provides them with certain advantages.

For starters, a DMCC license grants access to a secure, safe and regulated commercial ecosystem in which you can operate your business. It also offers tax incentives for crypto businesses to operate within the country’s jurisdiction while providing crypto businesses full access to UAE’s large banking sector. Furthermore, you receive support from local authorities such as a service of legal support and help with onboarding of clients.

By obtaining a Dubai crypto currency license from DMCC, you are assured of credibility and trust from your customers as well as other industries – all important factors when it comes to cryptocurrency businesses. Additionally, it’s an excellent way to start building relationships with influential players in the industry who may be able to provide valuable advice or investments in the future.

What is the DMCC (Dubai) and why choose It?

If you’re considering getting a Dubai crypto exchange license, the Dubai Multi Commodities Center (DMCC) is worth consideration. The DMCC is a free trade zone authority that provides a business-friendly environment for companies in various industries, including Fintech. Located in Dubai, it’s one of the fastest-growing free zones in the world with over 18,000 member companies and counting.

Choosing to get your permission through DMCC comes with a number of benefits. For one, it offers a straightforward procedure and clear terms for acquiring the necessary licenses. Additionally, DMCC has established partnerships with reputable service providers that can assist you in meeting regulative obligations and ensure that your legal entity adheres to best practices.

Moreover, DMCC provides a range of other benefits such as access to state-of-the-art infrastructure, networking opportunities with industry leaders, and tax incentives that make it an attractive location for businesses looking to establish themselves in the region. Due to these aspects DMCC is undoubtedly a viable option for anyone looking to obtain their license in the UAE.

DMCC crypto license types and terms

If you’re considering getting a crypto license in DMCC UAE and working with cryptocurrency in Dubai, it’s crucial to know the different types available and their specific terms. The two types of licenses currently offered are the Trade License and the License for Distributed Ledger Technology (DLT).

Trade License

A Trade License is necessitated for legal entities involved in buying and selling virtual currency. To be eligible for this authorization, your business must have an office within the Dubai Free Zone and be enrolled with the Dubai Department of Economic Development. You’ll also need to disclose a business plan, financial projections, and evidence of your operational track record.

License for Distributed Ledger Technology (DLT)

The DLT license is mandatory for businesses dealing with the development or implementation of blockchain-based solutions. This includes businesses involved in ICOs, smart contracts, digital asset management, etc. To be eligible for this license, you must adhere to all the terms of the Trade License and also provide additional data related to your DLT activities.

In addition to these requirements, all applicants must pass background checks and have a minimum share capital of AED 50,000. It’s also important to note that applying for a crypto license in DMCC UAE can be a lengthy process that can take a few months. However, once you’ve obtained your license, you’ll be able to operate within one of the most innovative and supportive crypto environments in the world.

In terms of data privacy and cybersecurity of your business (also to include contracts and agreements related to software, licensing, and tech services), it is advised to use legal and consulting services in the field of IT law and information technology. You can contact the lawyers at Eternity Law International and get a consultation about the service regarding launching Dubai cryptocurrency exchange.

cryptocurrency in dubai

The DMCC Crypto License Application Process

  1. Start with the online application form.

The DMCC has an online application form that you need to fill out. You’ll need to provide your personal details, company data, and details about the proposed activities related to your cryptocurrency business.

  1. Provide the document package.

You’ll need to provide a number of documents to support your application, such as the company’s memorandum and articles of association, proof of address, and financial statements. You’ll also need to submit a business plan that outlines your proposed activity related to cryptocurrency.

  1. Pay the application fee.

Once you’ve completed the application form and provided the required document package, you’ll need to pay the fee. The fee varies depending on the type of license you’re applying for and the nature of your business activities.

  1. Wait for the review process to be completed.

After you’ve submitted your application and paid the fee, the DMCC will review your request. This process can take several weeks, so be prepared to be patient.

  1. Receive your license for cryptocurrency exchange in UAE.

If your application is approved, you’ll receive your cryptocurrency license from the DMCC and become authorized to conduct cryptocurrency-related activity.

The application process for a Dubai crypto currency license can be time-consuming and complex, but it’s definitely worth it if you want to operate a crypto business in a regulated and secure ecosystem.

Ongoing obligations for DMCC crypto license holders

Once you’ve successfully obtained your license, it’s important to remember that there are ongoing obligations that come with maintaining it. These obligations are designed to ensure that your business operates in a transparent and compliant manner, and failing to meet them can result in penalties or even revocation of your license.

Some of the ongoing obligations for DMCC crypto license holders include the following.

  1. Annual Audit

One of the key requirements for maintaining your Dubai cryptocurrency license is completing an annual audit of your business. This audit is designed to ensure that your financial reporting is accurate and transparent, and that you are complying with all relevant regulations and guidelines.

  1. Compliance Reporting

In addition to the annual audit, you’ll also need to provide regular compliance reports to DMCC. These reports will detail your business operations and any changes that have occurred since your initial license application.

  1. Risk Management

As a crypto business, you’ll need to have a robust risk management framework to protect your clients and your business from potential threats. This includes implementing strong security measures, conducting regular risk assessments, and staying up-to-date with the latest cybersecurity threats and best practices.

  1. Record Keeping

Finally, you’ll need to maintain detailed records of all your business activities, including transactions, customer information, and compliance reports. These records will be subject to regular audits and inspections by DMCC, so it’s important to keep them accurate, up-to-date, and easily accessible.

By meeting these obligations, you can ensure that your DMCC crypto license remains valid and that your business operates in a compliant and transparent manner. So, make sure to prioritize these obligations and stay on top of any changes or updates to DMCC regulations and guidelines.

How much does a DMCC cryptocurrency license cost?

The cost of getting a DMCC cryptocurrency license is contingent on chosen types of licenses available. The application fee for a cryptocurrency license in DMCC is AED 10,000. Once your application has been approved, you’ll need to pay the license fee. This fee is subject to the type of license you’re obtaining. For a trading license, the fee is AED 50,000 per year. For a storage license, the fee is AED 25,000 per year. There may be other fees related to obtaining a DMCC cryptocurrency license, such as legal fees, audit fees, and compliance fees. It’s important to factor in these costs when budgeting for your license in Dubai.

Obtain your cryptocurrency Dubai license with Eternity Law International

As the world of cryptocurrency continues to evolve and grow, it’s crucial to stay up-to-date and informed on the latest developments and amendments in regulation. Obtaining a cryptocurrency license in Dubai may seem like a daunting task, but with the right guidance and support, it can be a smooth and successful process. We advise you to seek the assistance of our experienced professionals in the field to ensure compliance with regulations and requirements. By obtaining a cryptocurrency license in DMCC with Eternity Law international, you can position yourself and your business for success in this exciting and rapidly expanding industry.

You can also check out the proposals in the category “Banks for sale”. Every week we have new offers in the Fintech sector from different jurisdictions. Please contact us for more information about available offers.

Is Dubai crypto-friendly?

The UAE in general and Dubai in particular are friendly to cryptocurrencies, offering high-quality and loyal regulation. Dubai is recognized as a global center for cryptocurrencies and blockchain technologies. The jurisdiction has developed and adopted a favorable regulatory framework for firms operating in the field of providing services for the circulation of crypto-assets. That’s why the Dubai crypto currency license is attractive for those who want to open a crypto business.

How crypto works in Dubai?

In Dubai, there are several types of cryptocurrency operation, for which the corresponding types of licenses are issued.

  1. Cryptocurrency trading. Trading operations involve buying and selling virtual currencies.
  2. Work using distributed registry technology. These operations include the development or implementation of blockchain-based solutions. This also applies to companies involved in ICOs, smart contracts, digital asset management, and more.

Our specialists will help you obtain the type of Dubai cryptocurrency license required for your activity.

How to start crypto trading in Dubai?

In order to start trading with cryptocurrency in Dubai, you need to establish a company in the UAE and obtain the appropriate type of license. Our specialists will provide you with comprehensive professional assistance in preparing documents and interacting with the regulator.

Is Binance legal in Dubai?

Yes. The Binance Dubai cryptocurrency exchange has the appropriate permission to conduct officially regulated and legal activities in this city.

dubai crypto currency

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